House File 2473 - Introduced HOUSE FILE BY UPMEYER Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act establishing standardized requirements for long=term care 2 insurance policies advertised, marketed, offered, delivered, 3 or issued for delivery in the state, and providing an 4 applicability date. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5212YH 82 7 av/rj/14 PAG LIN 1 1 Section 1. Section 514G.7, subsection 1, Code 2007, is 1 2 amended to read as follows: 1 3 1. RULES. 1 4 a. The commissioner shall adopt rules establishing 1 5 standard provisions for terms and benefits required to be 1 6 included in a long=term care insurance policy advertised, 1 7 marketed, offered, delivered, or issued for delivery in this 1 8 state. The rules shall establish a standard format for such 1 9 long=term care insurance policies to facilitate ease of 1 10 comparison of the various policies by consumers. 1 11 b. The commissionermayshall adopt rules for full and 1 12 fair disclosure of the terms and benefits of a long=term care 1 13 insurance policy, including but not limited to rules setting 1 14 forth the manner, content, and required disclosures for the 1 15 sale of long=term care insurance policies, terms of 1 16 renewability, initial and subsequent conditions of 1 17 eligibility, nonduplication of coverage provisions, coverage 1 18 of dependents, preexisting conditions, termination of 1 19 insurance, probationary periods, limitations, exceptions, 1 20 reductions, elimination periods, requirements for replacement, 1 21 recurrent conditions, and definitions of terms. 1 22 Sec. 2. Section 514G.10, Code 2007, is amended to read as 1 23 follows: 1 24 514G.10 LONG=TERM CARE CONSUMER GUIDE. 1 25 An insurer offering a long=term care insurance policy to 1 26 any person shall provide to the applicant the current 1 27 long=term care insurance consumer guide prescribed by the 1 28 insurance division of the department of commerce. The 1 29 long=term care insurance guide prescribed by the insurance 1 30 division shall include a description of the standard terms and 1 31 benefits required to be included and the standard format 1 32 required to be used in such a long=term care insurance policy 1 33 in this state. The commissioner of insurance may by reference 1 34 adopt or permit the use of the long=term care insurance 1 35 consumer guide developed by the national association of 2 1 insurance commissioners, the blue cross and blue shield 2 2 association, or the health insurance association of America, 2 3 if the consumer guide that is adopted or permitted to be used 2 4 by reference meets all the requirements of this section. 2 5 Delivery of the long=term care insurance consumer guide shall 2 6 be made if a policy is advertised, solicited, or issued as a 2 7 policy as defined in this chapter, or if it is subject to this 2 8 chapter, regardless of the label applied by the insurer. 2 9 Except in the case of direct response insurers, delivery of 2 10 the long=term care insurance consumer guide shall be made to 2 11 the applicant at the time of application, and acknowledgment 2 12 of receipt of the long=term care insurance consumer guide 2 13 shall be obtained by the insurer. A direct response insurer 2 14 shall deliver the long=term care insurance consumer guide to 2 15 the applicant at the time the policy is delivered. An 2 16 insurance company required to distribute the guide shall 2 17 reimburse the state for all costs associated with the guide. 2 18 Sec. 3. APPLICABILITY. This bill applies to long=term 2 19 care insurance policies advertised, marketed, offered, 2 20 delivered, or issued for delivery in this state on or after 2 21 July 1, 2008. 2 22 EXPLANATION 2 23 This bill establishes standardized requirements for 2 24 long=term care insurance policies advertised, marketed, 2 25 offered, delivered, or issued for delivery in the state. 2 26 The bill amends Code section 514G.7 to require the 2 27 commissioner of insurance to adopt rules establishing standard 2 28 provisions for terms and benefits that must be included in a 2 29 long=term care insurance policy advertised, marketed, offered, 2 30 delivered, or issued for delivery in this state. The 2 31 commissioner is also required to adopt rules that establish a 2 32 standard format for such policies to facilitate ease of 2 33 comparison of the various policies by consumers. 2 34 The bill amends Code section 514G.10 to require that the 2 35 long=term care insurance consumer guide prescribed by the 3 1 insurance division of the department of commerce must include 3 2 a description of the standard terms and benefits, and format 3 3 that are required to be included or used in long=term care 3 4 insurance policies in Iowa. A provision allowing the 3 5 commissioner of insurance to by reference adopt or permit the 3 6 use of long=term care insurance consumer guides prepared by 3 7 other specified entities is amended to allow such adoption or 3 8 use by reference only if the consumer guide meets all the 3 9 requirements of the Code section. 3 10 The bill is applicable to long=term care insurance policies 3 11 advertised, marketed, offered, delivered, or issued for 3 12 delivery on or after July 1, 2008. 3 13 LSB 5212YH 82 3 14 av/rj/14